Legal Definitions - nonoperating income

Nonoperating income refers to the money earned by a business from investments or other sources that are not related to its primary operations. It is a type of income that is not generated from the regular business activities of a company.

Examples of nonoperating income include:

• Interest earned on investments
• Dividends received from other companies
• Gains from the sale of assets
• Income from rental properties

These examples illustrate how a business can earn income from sources other than its primary operations. For instance, a company may invest in stocks and earn dividends from those investments. This income is considered nonoperating because it is not generated from the company's regular business activities.